US REAL WAGES AND IMPORTS

Authors
Citation
Z. Zhu, US REAL WAGES AND IMPORTS, Applied economics, 28(11), 1996, pp. 1435-1450
Citations number
14
Categorie Soggetti
Economics
Journal title
ISSN journal
00036846
Volume
28
Issue
11
Year of publication
1996
Pages
1435 - 1450
Database
ISI
SICI code
0003-6846(1996)28:11<1435:URWAI>2.0.ZU;2-W
Abstract
The time-series properties of imports and US real wages are examined a nd the interlinks between them for the period 1970-1994, during which import competition was claimed to be part of the reason for US real wa ge staggering. Aggregate measures of real wages are used along with va rious measures of imports. No long-run comovement is found for real wa ges and imports. Real wages and imports were mainly explained by the s hocks to themselves. Historical decomposition of the series shows that , for the 1980s and early 1990s, real wages seemed to be mainly affect ed by aggregate US economic activities. During some periods, imports t ended to increase real wages but the impact seems to be mixed. The fin dings do not support the claim that imports caused US real wage declin e.